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HomeMy WebLinkAboutBPW-09-16-98-03Disability PremRESOLUTION BPW-09-16-98-03 WHEREAS, the Carreel has passed Ordinance No. D-1377-98 establishing a plan to pay partial health insurance premiums for retirees with 20 or more years of service, and full premiums for the families of employees disabled or killed in the line of duty; and WHEREAS, consistent operating guidelines are necessary to determine eligibility and benefit provisions under a variety of situations; and WHEREAS, Ordinance No. D-1377-98 specifies that such operating guidelines shall be set forth in the City of Camel Guidelines for Payment of Retiree Insurance Premiums, as mended from time to time. NOW, THEREFORE, BE IT RESOLVED, that the attached Guidelines for Payment of Retiree Insurance Premiums (which includes guidelines for employees disabled or killed in the line of duty), dated September 1998 C'Guidelines"), shall govern the operation of the aforementioned premium payment plan. BE IT FURTHER RESOLVED that the Director of Human Resources is authorized to interpret the Guidelines, amend the Guidelines, or promulgate such additional guidelines as are necessary for the prudent administration of this benefit, provided that any additional guidelines are first reviewed and approved by the Camel City Attomey or his or her designee. Disputes shall be submitted to the Board of Public Works and Safety for final resolution. Carmel, Indiana, t ,1998. i' /'4'~ s~C~//~id,'P[esiding Officer GUIDELINES FOR PAYMENT OF RETIREE PREMIUMS General Provisions Eligibility for the City of Carmel Employee Health Benefit Plan is determined solely by the provisions of the Plan, as are Plan benefits. This policy pertains to premium payments only, and does not amend the eligibility or benefit provisions of the Plan. 2. The Carmel Common Council reserves the right to change or terminate retiree insurance premium benefits at any time by passage of an ordinance. , The Director of Human Resources is authorized to interpret the premium payment policy and amend the policy guidelines as required for the prudent administration of this benefit. Any dispute regarding eligibility and/or benefits under this policy shall be submitted to the Board of Public Works and Safety, whose decision shall be final. , If any term or provision contained in these guidelines is invalid or unenforceable under any statute, regulation, ordinance, executive order or other rule of law, such term or provision shall be deemed reformed or deleted, but only to the extent necessary to comply with such statute, regulation, ordinance, order or rule, and the remaining terms and provisions of these guidelines shall remain in full force and effect. Determination of Eligibility 1. Retirees who have at least 20 years of active full-time service with the City of Carmel, in any capacity, are eligible to receive insurance premium contributions from the City. (Active service does not include time on long-term disability, even though that time may count toward pension benefits.) Retirees need not meet an age requirement to be eligible for premium contributions from the City. 2. For the purpose of this benefit, retirees include those employees who resign from their position at the City, or appointed officials who are not re-appointed, but not those who are dismissed for just cause or gross misconduct° 3. No retiree who is also an active full-time employee (e.g., a police or fire retiree who continues to work for the City in a civilian capacity) will be eligible for the benefits described herein until such time as he or she becomes ineligible for employee insurance benefits (although service credit will continue to accrue). A retiree whose spouse works for the City is also ineligible for retiree benefits as long as he or she is eligible for coverage as a dependent through the spouse. 4. Eligibility for premium contributions on the part of the City, will end when the retiree and/or spouse are no longer eligible for the Plan. 5. Employees who retired prior to January 1, 1999, and who have remained in the Plan, are eligible for premium contributions from the City. Retirees who have terminated their participation in the Plan for any reason are not eligible for reinstatement nor for premium contributions. 9/98 1 6. An employees must be enrolled in the Plan prior to his or her retirement to qualify for premium contributions. (Note that enrollment can only occur after a qualifying event, as defined by the Plan, or during the open enrollment period.) Ketirees who are not participants in the Plan are not eligible for enrollment after the retirement date. 7. An employee who is single when he or she retires, then marries, is eligible for contributions toward the employee-spouse premium. Determination of Benefits 1. The City will contribute 50% of the monthly employee-spouse premium for a retiree who has 20 years of senrice with the City, plus an additional 1% for each additional six (6) months of service, to a maximum of 75% of the employee-spouse premium. 2. Premium contributions will be based on employee-spouse medical and dental coverage, if both coverages are elected; in no event will the premium contribution exceed 75% of the cost of the coverages elected.. 3. A retiree with employee-only coverage (or spouse-only, if the retiree is over age 65) will be eligible to receive 50-75% of the employee-only premium (or spouse-only premium), using the above formula. 4. Senrice credit, for the purpose of this benefit, will be calculated from the date of hire. No benefit will be paid unless a retiree has completed 20 years of active full-time service. No additional percent will accrue (beyond the basic 50%) until the completion of an additional six (6) months of active full-time service. 5. The City's contribution will not exceed $350.00 per month or $4,200.00 per year unless this mount is increased by the Cannel Common Council through the passage of an appropriate ordinance. 6. Married couples who work for the City will not be eligible for a contribution of more than 75% of their total premium. If the husband and wife are enrolled together, the premium contribution will be based the length of service of the individual employed for the longer period of time (who shall be listed as the primary insured). 7. Coverage for eligible dependents other than the spouse may be continued at the retiree's expense. 8. No premium contributions will be made to any medical insurance plan except the City of Carmel Employee Health Benefit Plan. 9/98 2 GUIDELINES FOR PAYMENT OF PREMIUMS FOR INDIVIDUALS DISABLED OR KILLED IN THE LINE OF DUTY General Provisions Eligibility for the City of Carmel Employee Health Benefit Plan is determined solely by the provisions of the Plan, as are Plan benefits. This policy pertains to premium payments only, and does not amend the eligibility or benefit provisions of the Plan. , The Carmel Common Council reserves the right to change or terminate insurance premium benefits for individuals disabled or killed in the line of duty at any time by passage of an ordinance. The Director of Human Resources is authorized to interpret the premium payment policy and amend the policy guidelines as required for the prudent administration of this benefit. Any dispute regarding eligibility and/or benefits under this policy shall be submitted to the Board of Public Works and Safety, whose decision shall be final. , If any term or provision contained in these guidelines is invalid or unenforceable under any statute, regulation, ordinance, executive order or other rule of law, such term or provision shall be deemed reformed or deleted, but only to the extent necessary to comply with such statute, regulation, ordinance, order or rule, and the remaining terms and provisions of these guidelines shall remain in full force and effect. Determination of Eligibility 1. The family of a City employee who is disabled or killed in the line of duty is eligible to receive insurance premium contributions from the City. 2. A disability or death must be work-related, and not simply occur during work hours, to be deemed "in the line of duty". 3. In order to be eligible for premium assistance, a disabled employee must qualify for PERF disability benefits (for civilian employees, this requires five (5) years of creditable service). 4. Family members may remain on the Plan, or be added to the Plan, provided they meet the eligibility requirements of the Plan. However, after the date of the death or disability, only the employee's dependents may be added to the coverage provided under this section. New dependents of a surviving spouse may not be added. 5. Eligibility for premium contributions on the part of the City, will end when the disabled individual and/or dependents of an individual disabled or killed in the line of duty are no longer eligible for the Plan. 6. Employees who are disabled in the line of duty prior to January 1, 1999, and the families of employees killed in the line of duty, and who have remained in the Plan, are eligible for 9/98 3 premium contributions from the City. Those who have terminated their participation in the Plan for any reason are not eligible for reinstatement nor for premium contributions. An employees must be enrolled in the Plan prior to his or her retirement to qualify for premium contributions. (Note that enrollment can only occur at~er a qualifying event, as defined by the Plan, or during the open enrollment period.) Retirees who are not participants in the Plan are not eligible for enrollment af[er the disability or death. Determination of Benefits 1. The City will contribute 100% of the monthly family premium for employees who are killed or disabled in the line of duty. The City will also contribute 100% of the premium for individuals who have employee-spouse coverage, employee-child coverage or employee-only coverage. 2. The premium contribution will be based on medical and dental coverage, if both coverages are elected; in no event will the premium contribution exceed 100% of the cost of the coverages elected. 3. The City's contribution will have no monthly or annual dollar limit unless or until the Carmel Common Council sets such a limit through the passage of an appropriate ordinance. 4. No premium contributions will be made to any medical insurance plan except the City of Carmel Employee Health Benefit Plan. 9/98 4